Staff Reporters
Jul 23, 2013

Market Update: Indonesia's evolving consumer demands

Consumers in Indonesia's burgeoning middle class are shifting their focus from basic demands to lifestyle needs such as financial security, wellness, product quality and experience, according to Nielsen.

image.Heading
image.Heading
image.Heading
image.Heading
image.Heading
image.Heading
image.Heading

Market Update is a monthly feature, in partnership with Nielsen, that provides a quick summary of key economic drivers and consumer trends in a specific Asia-Pacific market.

Top five Indonesia consumer trends

1. Indonesian consumers’ purchase drivers are shifting from quantity and price to quality and experience:

  • Continued stable economic growth is leading to increased per-capita GDP and a growing middle-class population;
  • This is led by upper class and metropolitan populations.

2. Emerging middle-class consumers are often first-time purchasers of products and services:

  • While initial product appeal for these first-time buyers hinges on packaging or promotions, middle-class consumers are becoming more discerning and educated, and are increasingly focusing on product authenticity, value, health and nutritional benefits;
  • The rising middle class is also driving increased demand for ‘affordable luxury’ and ‘affordable premium’ offerings which they believe reflect their rising social status.

3. Consumers are shifting their focus from basic demands to lifestyle:

  • Demand for lifestyle-related products and brands is on the rise.

4. Demand for travel and entertainment products/services is increasing:

  • Rising incomes are leading to more demand for experiential offerings;
  • The population is experiencing changing lifestyles, with consumers leading busier lives and seeking therapeutic relief from everyday stresses;
  • Consumer are hungry for experience, looking to de-stress, and willing to pay.

5. Health, convenience and feeling/looking good are elements that drive growth:

  • Products that provide a combination of these elements are outstripping average growth rates.

Top trends in Indonesia retail

  • Expansion of shopping malls
  • Mass marketing
  • Massive new distribution infrastructure
  • Major expansion national chains
  • New business in advertising, media, communication
  • Big brands expanding nationwide
  • Lifestyle branding

 

 

Related Articles

Just Published

7 hours ago

US greenlights TikTok-Oracle deal; fate now lies ...

Under the arrangement that has been waved through by President Trump, ByteDance will create a new US-headquartered company called TikTok Global that will be majority owned by US investors.

2 days ago

Campaign Crash Course: What exactly is diversity?

The industry talks about diversity a lot, but do we understand the true definition of diversity, the difference between inherent and acquired? Find out, and test your knowledge with a quiz.

2 days ago

40 Under 40 2020 opens for entries

Calling all rising stars and those destined to make a big mark in APAC's marketing, media and advertising arena: Nominations are now open for our eighth-annual list of standouts who are 39 or under.

2 days ago

Agency launches internship for 55+ cohort

Thinkerbell's Thrive@55 internship seeks to offer an entry point for members of a "massively underrepresented" age group.